Blue ship at harbour

Emissions trading for shipping

The EU’s legislative bodies have agreed that shipping industry is included in the EU Emissions Trading System (EU ETS) from 2024. This will cause high added costs for shipping companies. We at Gasum assist you in adapting to the new regulation, predict allowance pricing and mitigate price risks concerning the allowance purchases.

EU ETS for shipping is a cap & trade system

The EU Emissions Trading System is a cornerstone in the EU’s climate policy. The European Union sets an overall limit or "cap" on the amount of greenhouse gases that can be emitted by the participating industries. This cap is gradually reduced over time to meet the EU's climate targets.

Participants can sell their excess allowances or buy more allowances to meet their emissions. This creates a market for allowances, with the price of an allowance being determined by supply and demand. The EU ETS allowance market has been volatile during its existence. 

EU ETS allowance price development
Image: EU ETS emissions allowance price development from January 2021 to June 2023. Image source: customer portal. Price source: Nasdaq OMX Commodities

EU ETS for maritime transport

From 2024 onwards, shipping companies will have to purchase and surrender EU ETS emission allowances for each ton of reported CO2 emissions in the scope of the system. For example, the additional costs related to allowances for a mid-sized RoPax actor can be even up to 15 million euros* annually.

EU ETS will impact the shipping companies gradually, since actors will initially have to surrender allowances for a portion of their emissions during an initial phase-in period, reaching 100% after 3 years:

  • 40% of allowances needed of verified emissions reported in 2024
  • 70% in 2026 and
  • 100% in 2027

The EU ETS will be applied to all cargo vessels and passenger ships over 5,000 GT (gross tonnage). The scope of emissions trading in internal routes and port calls within EU/EEA is 100 % of emissions and 50 % for voyages starting or ending outside the EU.

Gasum Portfolio Services is your expert in EU ETS

Emission trading requires expertise since EU ETS is a polical and volatile market. Trading in it demands resources to follow the market and factors affecting it. Gasum Portfolio Services provides its customers the access to the secondary market and helps making sound allowance purchasing decisions. 

It is both cost-effective and sensible for companies to outsource their emission trading. Gasum has dedicated specialists who track the market for the customers and know when it is the best time to trade. This lets customers concentrate on their core business. Gasum's portfolio management team has tens of years of experience in emission trading and they can tailor a solution that suits customer's needs. 

Gasum Portfolio Services will help you manage the risks involved in the electricity, gas and emissions markets. Contact our maritime sales team for more information on EU ETS for maritime. 

Mikael Liden, Gasum

Mikael Lidén

Sales Manager Maritime

tel. +46 70 000 9447